We’re already short via a backspread we’ve written off, but the temptation to try again at 107.61, a Hidden Pivot target that comes from the hourly chart (A=96.61 on July 6), is irresistible. Accordingly, I’ll suggest buying four September 104 puts if and when the target is very closely approached. The best way to price the puts is to monitor the bid/asked spread for about 15 minutes as the rally closes on the target. You should stop yourself out of the position if the puts trade for $20 less than you paid for them. The theoretical risk implied is about $100. including commissions.
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